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Lost customers

Definition

If you’re running a subscription business you’ll be keeping a close on this simple metric. Crucially, a lost customer is not a customer that has ‘cancelled’, for example they’ve called / emailed in to cancel their contract, or have clicked a ‘Cancel’ button in your platform. Lost customers are a count of the number of customers in the period that have churned.

A customer has ‘churned’ when the end of the contract period occurs. So if they cancel part way through a monthly billing contract, then they are not considered as a Lost customer until their next billing date.

How is Lost customers calculated?

The number of customers who have churned in a given period are counted.

The formula for calculating Lost customers is:

Lost customers = Count of Customers who were billed last month, but not this month.

Example:

Last month, 80 customers ‘cancelled’ their monthly contract with the business.

1 year ago, 3 customers ‘cancelled’ their annual contract with the business.

This month, they would all be counting toward the Lost customer count.

Ie. 80 monthly customers from last month + 3 annual customer from last year = 83 customers lost this month.

Related terms

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  • Step 1

    Create your free Upzelo account and connect your subscription billing data in just a matter of minutes. Invite teammates to help connect accounts with ease.

    Create account button on an example signup screen
  • Step 2

    Obtain real-time subscription analytics, insights and benchmarks. Set up alerts to notify you via email or Slack when a particular event takes place.

    Subscription analytics overview with KPIs for MRR, Active customers and a partially hidden bar chart showing breakdown of MRR
  • Step 3

    Segment your customers into audiences, create surveys, build offers and deliver fully-branded customer flow experiences that increase retention.

    Example of a cancellation flow with Audience at the top, leading to a Bi-monthly billing survey, 10% off next bill and finishing with a Confirmation message